What is the average inventory balance

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Reference no: EM13911940

Consider order costs are $20 and holding costs $2 per unit. The firm uses 200,000 units in a year.

1. What is the EOQ?

2. Given the EOQ you calculated, how many orders should be placed and what is the average inventory balance?

3. If it takes 2 days to receive an order from suppliers, at what inventory level should Lott place another order?

Reference no: EM13911940

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